Exercise 2: Valuation
- Due Feb 9 at 10:30am
- Points 2
- Questions 2
- Available Jan 29 at 11:20am - Mar 5 at 5:59pm
- Time Limit None
- Allowed Attempts Unlimited
Instructions
1. Travel cost method
You have collected the following data to find the value of recreation at a local park
| Zone | Average travel cost ($ per visit) | Population (thousands) | Total visits per year |
|---|---|---|---|
| A | 10 | 20 | 1,600 |
| B | 20 | 30 | 1,800 |
| C | 30 | 40 | 1,600 |
| D | 40 | 50 | 1,000 |
A. First, find the trips per capita for each zone.
B. Then use the entries for average travel cost (P) and trips per capita (Q) to construct a demand curve for recreation at the park. This is a linear relationship, so the curve will take the form y = mx + c.
C. Draw the graph.
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